What is the main difference between a private treaty sale and an auction?
Correct Answer
D) Private treaty is negotiated, while an auction uses open bidding.
Private treaty sales involve direct negotiation between buyer and seller on price and terms, while auctions create a competitive bidding environment where the highest bidder wins. This fundamental difference affects the entire sales process.
Why This Is the Correct Answer
In a private treaty sale the price and terms are negotiated between buyer and vendor through the agent; at an auction buyers compete by open bidding on the day.
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